CCT 355: E-Business Technologies

1. CCT 355: E-Business Technologies Class 6: B2B/B2C and Transaction Processing

2. Administration • Case study returned at break – thoughts • Hand in change management simulation • Groups for final project – proposal to keep you on track due next week (more of a brainstorming/notes document than anything formal)

3. Business and Design • Martin’s notion of design thinking – design as the new value add • Pink – in an age of abundance, automation and Asia (alliteration!) designing for want, not need, is key • MFAs as the new MBA? • Florida – creative class careers essential for a vibrant economy – creative class as global, interconnected, mobile, diverse (e.g., Florida’s “gay hypothesis”)

4. Business Model Generation • Some core notions of business concepts are still important • Nine core components noted in book • All impacted by changes in technology • Changes in one iterate among others – model as systemic vs. isolated units • Applies to all sorts of domains – case studies in book are interesting to look at

5. Customer Segments • For whom are we creating value? Who are our most important customers? • Mass and niche markets • Segmentation and diversification

6. Value Propositions • What value do we offer? What problems are we trying to solve? • Range of options – newness, performance, customizability, design/usability, status, price, risk reduction, etc. • Whatever the decision is focuses the business’ direction – should tie to customer segments

7. Channels • Linking value proposition to customer segments • How are channels integrated? Which work best? • Channel phases – awareness, evaluation, purchase, delivery, after sales support • Outsourced or in-house?

8. Customer Relationships • Expectations and management of relationship • What’s established? At what cost? • From “high touch” services and communities to automated/self-service – different demands and expectations

9. Revenue Streams • How much are customers willing to pay? • How do streams combine into overall revenue? • Different models exist – sale of tangible goods, usage fee, subscriptions, licensing, brokerage fees, advertising, etc. • Dependent on existing revenue stream practices – hard to monetize something that’s free elsewhere!

10. Key Resources • What resources are required to meet value propositions? Distribution? Revenue streams? Relationships? • Physical, intellectual, human and financial resources

11. Key Activities • What actions realize value propositions? • Production, problem solving, networking/connections, etc • Efficiency and effectiveness of activities towards key value propositions

12. Key Partnerships • Who are are partners/suppliers? How does their model mesh with us? • Strategic alliances, “cooptition”, joint ventures, established relationships (and exclusivity) • Concerns about scale and risk

13. Cost Structure • What are the most important costs involved? • Which resources are the most valuable? • Fixed/variable costs and economics of scale • Cost or value driven? Transactional and resource-based models of business

14. Patterns, Design, Strategy, Process • Different patterns are evident in mix of core nine components • These patterns are not accidental, but rather designed – many core components of design thinking come into play • Business model (re)generation – very similar in kind to change management process – change causes concern in many domains that needs to be addressed

15. Weekly Assignment • A brick and mortar specialty chocolate store abandons its storefront and moves to online sales • What changes in the nine core components might occur? • (Obviously you can take the week on this one…no right answer, just point form notes will do.)